Texas 2015 - 84th Regular

Texas House Bill HB2414 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R11367 MEW-D
2	2	By: Vo H.B. No. 2414
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to withdrawal and restriction plans for certain insurers.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 827.001, Insurance Code, is amended by
10	10	amending Subdivision (1) and adding Subdivision (3) to read as
11	11	follows:
12	12	(1) "Insurer" means an insurance company or other
13	13	legal entity authorized to engage in the business of insurance in
14	14	this state, including a fraternal benefit society, a reciprocal or
15	15	interinsurance exchange, a Lloyd's plan, a farm mutual insurance
16	16	company, and a county mutual insurance company. The term includes
17	17	an affiliate. The term does not include [a farm mutual insurance
18	18	company or] an eligible surplus lines insurer regulated under
19	19	Chapter 981.
20	20	(3) "Personal automobile insurance" and "residential
21	21	property insurance" have the meanings assigned by Section 2254.001.
22	22	SECTION 2. Section 827.006, Insurance Code, is amended to
23	23	read as follows:
24	24	Sec. 827.006. [RESUMPTION OF] WRITING INSURANCE AFTER
25	25	COMPLETE WITHDRAWAL. An insurer that withdraws from writing
26	26	residential property insurance or personal automobile [all lines
27	27	of] insurance in this state may not, without the approval of the
28	28	commissioner, write any line of [resume writing] insurance in this
29	29	state before the fifth anniversary of the date of withdrawal.
30	30	SECTION 3. Section 827.007, Insurance Code, is amended to
31	31	read as follows:
32	32	Sec. 827.007. PENALTIES. The commissioner may impose
33	33	sanctions [the civil penalties] under Chapter 82 on an insurer that
34	34	fails to comply with this chapter [obtain the commissioner's
35	35	approval before the insurer:
36	36	[(1) withdraws from writing a line of insurance in
37	37	this state; or
38	38	[(2) reduces the insurer's total annual premium volume
39	39	by 75 percent or more in any year].
40	40	SECTION 4. Section 827.008(a), Insurance Code, is amended
41	41	to read as follows:
42	42	(a) Before an insurer[, in response to a catastrophic
43	43	natural event that occurred during the preceding six months,] may
44	44	restrict writing new personal automobile insurance or residential
45	45	property insurance business in this state or a rating territory [in
46	46	a line of personal automobile or residential property insurance],
47	47	the insurer must file a proposed restriction plan with the
48	48	commissioner for the commissioner's review and approval. The
49	49	commissioner may not approve a restriction plan in which the
50	50	insurer proposes to increase the relative number of residential
51	51	property insurance policies issued by the insurer that offer
52	52	substantially less coverage than the average residential property
53	53	insurance policy previously issued by the insurer.
54	54	SECTION 5. Sections 827.010(a) and (d), Insurance Code, are
55	55	amended to read as follows:
56	56	(a) The commissioner may impose a moratorium of not longer
57	57	than two years on the approval of:
58	58	(1) [the approval of] withdrawal plans; or
59	59	(2) [the implementation of] plans to restrict the
60	60	writing of new business described by Section 827.008.
61	61	(d) To impose or renew a moratorium under this section, the
62	62	commissioner must determine, after notice and hearing, that [a
63	63	catastrophic event has occurred and that as a result of that event]
64	64	a particular line of insurance is not reasonably expected to be
65	65	available at an affordable premium to a substantial number of
66	66	policyholders or potential policyholders in this state or, in the
67	67	case of lines of personal automobile or residential property
68	68	insurance, in a rating territory.
69	69	SECTION 6. Section 827.008(c), Insurance Code, is repealed.
70	70	SECTION 7. The change in law made by this Act applies only
71	71	to a withdrawal or restriction plan filed with the Texas Department
72	72	of Insurance on or after the effective date of this Act. A
73	73	withdrawal or restriction plan filed with the Texas Department of
74	74	Insurance before the effective date of this Act is governed by the
75	75	law as it existed at the time the withdrawal or restriction plan was
76	76	filed, and that law is continued in effect for that purpose.
77	77	SECTION 8. This Act takes effect September 1, 2015.